Around 420 million connected cars expected on the road in 2018

According to French think tank IDATE, there will be 420 million connected cars on the road by 2018, compared to 45 million in 2013, an annual growth of 57 per cent. IDATE attributes the development of the market to European safety regulations and manufacturers looking to identify new sources of revenue.
May 9, 2014 Read time: 2 mins
RSSAccording to French think tank 7768 IDATE, there will be 420 million connected cars on the road by 2018, compared to 45 million in 2013, an annual growth of 57 per cent. IDATE attributes the development of the market to European safety regulations and manufacturers looking to identify new sources of revenue.

Connected cars are equipped with internet access, allowing external communication and access to applications or terminals both inside and outside of the vehicle.

Three technical solutions currently exist: smartphones used to manage connectivity, on-board integrated technology dedicated to connected services and offering the most technical possibilities, or a combination of the two, with the smartphone used for entertainment purposes and the integrated system for Telematics services. The integrated system solution is set to lead the market with more than 222 million units expected to be sold in 2018. At present, the main business model for operators is B2B2C, with these operators looking to charge manufacturers for traffic generated. As for internet actors, 1691 Google is focusing on on-board technology and data collection to better target advertisements, while 493 Apple is offering new technology to allow an interface with its products.

Revenue from vehicle connectivity is expected to reach US$11.10 billion in 2018.
Location Based Systems

For more information on companies in this article

Related Content

  • Global V2V penetration in new cars to reach 69 per cent by 2027
    November 21, 2013
    The latest analysis by ABI research expects global V2V penetration in new cars to increase from 10.9 per cent in 2018 to 69 per cent in 2027. ABI Research vice-president and practice director Dominique Bonte comments: “Huge interest in autonomous driving across the automotive ecosystem firmly positions V2X technology and applications as a key component of driverless car systems. However, some OEMs are claiming some forms of (semi)-autonomous driving can be achieved by just using in-vehicle ADAS-sensors.
    Read More
  • Growth of fleet management systems in Russia/CIS and Eastern Europe
    July 4, 2014
    According to a new research report from analyst firm Berg Insight, the number of active fleet management systems deployed in commercial vehicle fleets in Russia/CIS and Eastern Europe was 2.9 million in the fourth quarter of 2013. Growing at a compound annual growth rate (CAGR) of 15.7 per cent, this number is expected to reach 5.9 million by 2018. The Russian market accounts for a significant share of the region’s total installed base. The top ten providers of fleet management solutions for commercial v
    Read More
  • FOTsis targets ‘socially inclusive’ cooperative ITS
    December 5, 2013
    The FOTsis project addresses the imbalances between the vehicular and infrastructure sides of cooperative ITS infrastructures and looks to ensure road operators can help to enrich future technology applications. By Jason Barnes. Several developments have conspired to push the vehicular side of cooperative infrastructures/cooperative ITS to the fore in recent years. The automotive industry’s rather shorter product development and lifecycles combined with economic slowdown in many regions gave rise to the not
    Read More
  • Public transport ITS market in Europe and North America to grow 7 per cent by 2020
    January 3, 2017
    The latest research from Berg Insight indicates that the market for intelligent transport systems (ITS) in public transport operations in Europe was US$1.4 billion (€1.35 billion) in 2015. Growing at a compound annual growth rate (CAGR) of 7.2 per cent, it is expected to reach US$2 billion (€1.91 billion) by 2020. The North American market for public transport ITS is similarly forecast to grow at a CAGR of 8.1 per cent from US$0.6 billion (€0.59 billion) in 2015 to reach US$0.9 billion (€0.87 billion) in
    Read More

Highlighted Content